Passing the Torch: How Generation Z is Shaping Entrepreneurship Succession

What makes Bahlsen’s story compelling is how it ties into broader themes of succession, generational shifts, and the rise of social media. Born in 1993, Bahlsen is just outside the Generation Z bracket, but as researchers note, the generational cutoff points are not exact. In the media, Generation Z members are often depicted as “soft,” which has earned them the nickname “snowflakes.” However, this is only part of the story.

This perception may influence how they view the family business and the idea of running it one day. “It can be really hard to convince members of Generation Z that the family business aligns with their values, beliefs, and approach to work-life balance,” says Anita Zehrer, Professor in Family Business and Head of the MCI Family Business Center in Innsbruck, Austria, who also works as a business coach. “I coach many tourism family businesses. In these companies, the older generation tends to work around the clock, while the young generation no longer wants that.”

However, while there are differences between Generation Z and previous ones, focusing solely on these can obscure shared experiences. In a recent New Yorker article titled “The Year in Quiet Quitting,” Cal Newport argues that, like generations before them, Generation Z is finding it hard to balance work with a fulfilling life. The recent “quiet quitting” trend, where employees do only the minimum required, is actually “the first step of a younger generation developing a more nuanced understanding of work’s role in their lives,” he writes. “Before we criticize them, we should remember we were all once in this position.” In this light, Bahlsen’s announcement can be seen as her attempt to find a balance that suits her, rather than as an example of the “snowflake” behavior attributed to Gen Z.

It’s not just about what is communicated, but how it’s communicated. “Generational differences lead to different communication styles, which can cause conflict and misunderstandings,” says Zehrer. “I encountered a family business where the young generation communicated via WhatsApp, but not with their father, who was still in charge. He preferred in-person meetings.” These different communication styles can extend beyond the choice of platform: older family members will appreciate it if the younger generation shares any concerns about succession privately, rather than on TikTok. This way, they can be offered additional training or time to adjust. Meanwhile, Gen Zers will appreciate being treated as equals—with their own vision for the company and a need for work-life balance—regardless of the age difference.

Zehrer also suggests seeking external support during the handover. “Having an external person manage the transition can be helpful. This could be a tax consultant, a lawyer, or a business coach specializing in soft issues, because it’s not just about transferring ownership, but also dealing with personal, emotional, and psychological topics, which are rarely addressed,” she said. “In my experience, the younger generation is much more open to having external help than the older generation.”

In the end, it comes down to shared goals for the business, better communication, and empathy, which can help bridge generational differences in family-owned companies. It’s not about proving one generation right or wrong, but about ensuring that the business and its values endure.

What Makes Families Grow Over Generations

Strong family governance can aid in the successful transfer of a family business—our owner, the Princely Family of Liechtenstein, has successfully exemplified this for centuries.

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